Total Value Locked (TVL)
TVL is the amount of assets that are currently being staked in a specific protocol. This value does not, in any way, represent the number of outstanding loans. Instead, it shows the total amount of underlying supply being secured by a specific application and /or by Defi platform as a whole.
One of the key metrics that the Defi space likes to look into when comparing Defi apps is Total Value Locked (TVL). TVL estimates the total value of the tokens that are locked within these dapps, with the argument going that the higher the value being locked up in a Defi, the better. You can think of TVL as all the liquidity in the liquidity pools of a given money marketplace. For example; In the case of Uniswap, the TVL is the amount of funds deposited by liquidity providers to the protocol.
The major work of the TVL is that it gives you an idea about the overall interest in Defi. Like, it is very effective in comparing the market share of different Defi protocols. It can be very useful, especially for investors who are looking for undervalued Defi projects to invest in.
In the case of the market cap, the market cap shows you how big a cryptocurrency is, and it can help you to make investment decisions. Finding out a coin’s market cap is very simple. All you need to do is multiply a coin’s current price by the total number of coins in circulation. Known as the popular platforms you can use to identify coins with a high market cap is Coinmarketcap and CoinGecko.
With the emergence of various cryptocurrencies in the crypto space, it is crucial that you understand the value of a coin before investment. Both the TVL and market cap are useful tools you can use to identify the coin you wish to invest in. And if you bring in another correlation of both of these tools in a peculiar way i.e., MarketCap/TVL ratio.
In this article, we will be looking at the top 10 coins by market cap/ TVL ratio. Let’s get started.
Top 10 Coins by MarketCap/TVL Ratio
Lido is a liquid staking solution for Ethereum. It allows users to stake their ETH with no minimum deposits or to maintain the infrastructure – while engaging in on-chain activities, such as lending, to compound returns. LDO is the native traditional token of Lido. It is used for managing fee parameters and distributions, governing the removal and addition of lido node operators and allowing governance rights in the Lido DAO.
Currently, Lido is being traded approx at $0.98 with a TVL of $271 million. The coin has a market cap of $8 million and is ranked #830 in coin market cap. The Marketcap/TVL ratio is 0.05, and there are over 8 million LDO coins in circulation. It is one of the top coins by Marketcap/ TVL Ratio.
BT.Finance is a smart Defi yield aggregator based on the Ethereum ecosystem, which targets the best and sustainable yield for tokens. The BT finance vault is divided into three different pools: Stable profits pool, High Yield Pool and smart Hybrid Pool. BT is the native governance token of BT finance.
The current price of BT Finance is around $29.56, with a TVL of $4 million and a Marketcap/TVL ratio of 0.16. The coin has a market cap of $458 thousand and a circulating supply of 16 thousand BT coins. The Uniswap (V2) is one of the major platforms that trade the coin.
Curve DAO Token
Launched in 2020, Curve is a Decentralized Exchange (DEX) liquidity pool on Ethereum built for low, extremely stablecoin trading. It allows users to trade between stablecoins with low slippage, low fee algorithms and created specifically for stablecoins and earning fees. In the background, the tokens within the liquidity pools are also supplied to the compound protocol or iearn.finance with the purpose of generating more income for liquidity providers. In August last year, Curve launched a decentralized autonomous organization (DAO), with CRV as its in-house token.
Curve’s current price is approx $2.0 with a TVL of $4 billion and a Marketcap/TVL ratio of 0.11. The coin is currently ranked #95 in coin market cap with a market cap of $463 million. There are over 231 million CRV coins in circulation. It is ranked among our top ten coins by Marketcap/TVL ratio and it’s available on Binance.
Idle is a decentralized yield platform on the Ethereum platform that uses automated rebalancing among Defi protocols to optimize its users’ returns. The platform users are allowed to choose between high risk, high return (max yield) or adjust to a lower risk using the Risk-Adjusted allocation strategy.
The Idle finance unique feature allows users to move their money manually between the plethora of Defi protocols that exist today.
The tokens price is currently hovering around $11.70 with a market cap of $13 million, and the coin is currently ranked #696 in the coin market cap. The coin also has a Marketcap/TVL ratio of 0.16 with a total value locked of $124 million. Currently, there are over 1million IDLE coins in circulation. It is one of the top coins with a high Market cap and TVL ratio.
Harvest Finance was built for users that are looking for a better way to farm the latest projects that are producing yield for users. How the project works is that when you deposit your tokens (such as USDC, WBTC, DAI, etc.), it is utilized in high yield farming opportunities, and you receive an fAsset ( Fdai, FUSDC, fWBTC) that earns you a proportional share of the farming revenue. One of the advantages of Harvest is that it lowers the barrier to entry for people who don’t wish to monitor Defi 24/7, pay for gas costs to harvest regularly, move funds between opportunities, etc.
The Farm token allows holders to gain a share in the yield farming revenue, receive incentives for providing liquidity in Uniswap, and to vote for changes in the platform.
The token is currently traded at approx $232.78 with a Marketcap/TVL ratio of 0.17 and Total value locked (TVL) of $662 million. The coins market cap is $110 million, with over 480 thousand farm coins in circulation.
BarnBridge is a cross-platform protocol for Tokenizing Risk. The purpose of the protocol is to reduce the interest rate volatility risk using debt-based derivatives and also to reduce the market price exposure risk using tranched volatility derivatives. The top exchanges trading the BarnBridge are; Uniswap (V2), Gate.io, Hoo, MXC.COM, etc.
The token is currently traded at approx $48.46 with a market cap of $72 million and a circulating supply of 1 million BOND coins. The coins total value locked (TVL) is $437 million with a Marketcap/TVL ratio of 0.15.
Badger is a DAO dedicated to developing products and infrastructure to promote Bitcoin in decentralized finance. The aim of Badger is to be the one top app for all the Bitcoin things in Defi. That is from borrowing, mint, yield, swap, liquidity and elasticity. The foundational product of Badgers is the Sett vault and DIGG. And users can deposit various tokenized bitcoin types such as wbtc, renbtc, sbtc to generate automated yield. The badger token governs the DAO, including its treasury and all of its products. Since it is a community-run initiative, token holders have a say on everything and also have shared ownership. The goal of the platform is to create an enabling environment where the best builders in the industry will come together to build the products we need for BTC.
The Badger token’s current TVL is $1 billion with a Marketcap/TVL ratio of 0.18. The coin is ranked #126 in the coin market cap with a circulating supply of $7.2 million Badger coins. The coins price is currently hovering around $38.69, with the market cap standing at $286 million. It is another coin top coin with a high Marketcap/TVL ratio and it’s available on Binance.
Keep Network aims to solve the issue of privacy on public blockchain. To do this, the network incentivizes its nodes for storing and encrypting private data. The Keep network allows developers to build fully-decentralized apps while solving the privacy issues of data on public blockchain.
Keep Network’s current TVL is around $320 million with a Market Cap / TVL ratio standing at 0.883. The network’s token KEEP is ranked #231 at the time of the article being written while its price fluctuating around $0.5.
Adding extra features on top of Uniswap, Balancer is yet another Automated Market Maker (AMM) built on Ethereum blockchain. It enables users to earn fees on their idle-lying Ethereum-based assets and leverages these assets to provide liquidity. Unlike Uniswap, Balancer also allows users to create customized liquidity pools.
As Balancer is known amongst one of the top DeFi protocols, the Total Value Locked on the platform is close to 2 Billion USD and has a Market Cap of $310 million. The protocol’s native token BAL is currently ranked at #127 and has a Market Cap / TVL ratio of 0.162 and it’s available on Coinbase.
Unit Protocol DUCK
Unit Protocol is a decentralized borrowing platform allowing users to borrow stablecoin USDP against various crypto collaterals.
The protocol’s current market cap is $69 million and has a TVL of $206 million. Looking at the Market Cap / TVL ratio, it is currently standing at 0.34. The protocol’s new token DUCK is currently ranked at #362 in terms of market cap.
These are some of the coins with a high market cap/ TVL ratio. There are still other ones which you can check online. With the market cap and TVL, you can estimate whether a token is going to be a profitable long term investment or not.
Written by: Narender Charan